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Contractual Disputes

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Contractual Disputes CONTRACTUAL DISPUTES BRIEF DESCRIPTION A valid contract is a legally enforceable agreement between two or more parties for the exchange of goods or services. The elements of a valid contract are (1) offer, (2) acceptance, (3) exchange, and (4) consideration. To determine whether a contract is valid an individual must first determine whether the contract deals with goods: Goods – contracts governing the sale of goods fall under the Uniform Commercial Code (UCC). Other – contracts dealing with the sale of other objects or services (not goods) fall under the common law. Contracts are addressed in the Alabama State Code §7 – Commercial Code. See also Freeman vs. First State Bank of Albertville, 401 So.2d 11 (Ala. 1981) (stating that “[t]he elements of a contract are: (1) agreement; (2) consideration; (3) two or more contracting parties; (4) legal object; and (5) capacity.”). ADDITIONAL INFORMATION Statute of Frauds The Alabama Statute of Frauds is addressed in the Alabama State Code §7-2-201. In Alabama, contracts for the sale of goods, $500.00 or more in value, are not valid unless transcribed in a writing that evidences the existence of a valid contract between the parties. Additionally, contracts for the sale of land, answering the debt of a third party, and which cannot be completed within one year must also be in writing: Exceptions include: 1. If payment for the contract is already complete or the party the claim is filed against admits that a valid contract exists. 2. The goods were “specially manufactured” to serve a specific purpose of the buyer. The Parol Evidence Rule may impact what additional information may be allowed to supplement a seemingly complete contract. 1 Promissory Estoppel In certain instances, recovery is possible for a party’s failure to fulfill a promise. When that promise is relied upon to the detriment of one party, that person may have a claim for promissory estoppel. Legally Enforceable To be enforceable, all contracts must be for a legally permissible purpose. Capacity The permissibility of a case for capacity to contract against a minor or mentally handicapped individual is briefly addressed in the Alabama Rules of Civil Procedure §17(c). The capacity to sue and to be sued is a matter of substantive law in the State of Alabama. Typically, the contracting party must be (1) of legal age to enter into the contract and (2) have sufficient mental capacity to understand the meaning of the contract. RULES & REGULATIONS The statute of limitations is six years from the formation of the contract and ten years if the contract is under seal (unless the term is changed in contract). See §§6-2-33 to 6-2-34. FILING INSTRUCTIONS The type of form an individual needs to file a contractual claim depends on the amount in question: Amount in Question Type of Form Found on Page Between $3,000.01 and Complaint Form (Except Can be found on page: 4 $10,000 Small Claims & Detinue Actions) – Form C-88 Between $1.00 and $3,000.00 Complaint Form (General) – Can be found on page: 7 Form SM-1 The type of form an individual needs to respond to a contractual claim depends on the action they wish to take: 2 Form Name Found on Page Defendant’s Answer – Form SM-3 Can be found on page: 10 Defendant’s Counterclaim – Form SM-6 Can be found on page: 13 3 COMPLAINT FORM (EXCEPT SMALL CLAIMS & DETINUE ACTIONS) GENERAL PURPOSE The Statement of Claim – Complaint (Except Small Claims & Detinue Actions) is the State of Alabama Unified Judicial System Form C-88 (Civil Summons). The purpose of this form is to file a claim to seek money damages between $3,000.00 and $10,000.00. This form is not to be used for claims below $3,000.00 and/or claims seeking recovery of property. STATUTE OF LIMITATIONS The complaint must be filed within the applicable statute of limitations for the type of claim being filed. GENERAL NOTES This form must be completely filed out and the client’s handwriting must be legible. FILING INSTRUCTIONS It is important that all blanks in this form are complete before an individual files the form. This form is filed with Alabama Unified Judicial System Form C-34 (Civil Summons). 4 State of Alabama Case Number Unified Judicial System STATEMENT OF CLAIM (Complaint) Form C-88 (front) Rev. 6/96 District Civil (Except Small Claims and Detinue Actions) IN THE DISTRICT COURT OF _________________________________________________________________, ALABAMA (Name of County) _______________________________________________ v. ___________________________________________________ Plaintiff Defendant Home or Business Address: _______________________________ Home or Business Address: _______________________________ _____________________________________________________ ______________________________________________________ Home or Business Telephone Number: ______________________ Home or Business Telephone Number: ______________________ Name of Attorney: _______________________________________ Additional Defendant: ____________________________________ Business Address: ______________________________________ ______________________________________________________ ______________________________________________________ Business Telephone Number: _____________________________ Date of Filing ________________________________ COMPLAINT 1. The plaintiff claims the defendant owes the plaintiff the sum of $ ______________________ because: (make a short and plain statement of the claim showing that the plaintiff is entitled to relief.) The plaintiff also claims from the defendant court costs in the sum of $ ____________________, plus $ _________________ for interest and $ _________________ for attorney’s fees. By:________ Clerk ___________________________________________ Plaintiff or Plaintiff’s Attorney (Signature) Clerk’s Address: Attorney Code: ______________________________ ___________________________________________ Plaintiff’s or Plaintiff’s Attorney’s Phone Number Telephone Number : ______________________ SUMMONS To any sheriff or any person authorized by either Rules 4. 1(b)(2) of the Alabama Rules of Civil Procedure to perfect service: You are hereby commanded to serve this summons and complaint upon the above-named defendant. NOTICE TO DEFENDANT THE COMPLAINT SET OUT ABOVE IS IMPORTANT, AND YOU MUST TAKE IMMEDIATE ACTION TO PROTECT YOU RIGHTS. YOU ARE REQUIRED TO MAIL OR HAND DELIVER A COPY OF A WRITTEN ANSWER, EITHER ADMITTING OR DENYING EACH ALLEGATION IN THE COMPLAINT, TO THE PLAINTIFF (OR THE ATTORNEY FOR THE PLAINTIFF), AT THE ADDRESS NOTED ABOVE. THIS ANSWER MUST BE MAILED OR HAND DELIVERED TO THE CLERK OF COURT AT THE ADDRESS BELOW WITHIN FOURTEEN (14) DAYS AFTER THIS SUMMONS AND COMPLAINT WERE DELIVERED TO YOU, OR A JUDGMENT BY DEFAULT MAY BE ENTERED AGAINST YOU FOR THE MONEY OR OTHER THINGS DEMANDED IN THE COMPLAINT. (YOU MUST FILE THE ORIGINAL ANSWER WITH CLERK OF THIS COURT). Dated ________________ ______________________________________ Clerk of Court _______________________________________ Address of Clerk of Court COURT RECORD (Original) PLAINTIFF (Copy) DEFENDANT (Copy) Form C-88 (back) Rev. 6/96 STATEMENT OF CLAIM (Complaint) District Civil (Except Small Claims and Detinue Actions) RETURN ON SERVICE Return receipt of certified mail received in this office on _______________________(date). I certify that I personally delivered a copy of this Statement of Claim (Complaint) at ____________ on __________________ and on _______________ at _________, I served it on the above-named defendant by delivering a copy of the complaint. Date _____________________, ___________ _______________________________________________ Sheriff/Deputy Sheriff/Process Server COMPLAINT FORM ( GENERAL) GENERAL PURPOSE The Statement of Claim – Complaint (General) is the State of Alabama Unified Judicial System Form SM-1 (Complaint). The purpose of this form is to file a claim wherein the plaintiff is seeking money damages up to $3,000. This form is not to be used for claims above $3,000. Additionally, do not use this form for claims seeking recovery of property. STATUTE OF LIMITATIONS The complaint must be filed within the applicable statute of limitations for the type of claim being filed. GENERAL NOTES This form must be completely filed out and the client’s handwriting must be legible. FILING INSTRUCTIONS It is important that all blanks in this form are complete before an individual files the form. This form is filed with Alabama Unified Judicial System Form SM-7 (Civil Summons). 7 State of Alabama Case Number Unified Judicial System STATEMENT OF CLAIM Form SM-1 (front) Rev. 3/95 (Complaint) General IN THE SMALL CLAIMS COURT OF _________________________________________________________________, ALABAMA (Name of County) __________________________________________ v._______________________________________ Plaintiff Defendant Plaintiff’s Defendant’s Home Address Home Address Plaintiff’s Attorney’s Additional Address Defendant(s) and Addresses NOTICE TO EACH DEFENDANT – READ CAREFULLY YOU ARE BEING SUED IN THE SMALL CLAIMS COURT BY THE PLAINTIFF(S) SHOWN ABOVE. THE JUDGE HAS NOT YET MADE ANY DECISION IN THIS CASE, AND YOU HAVE THE RIGHT TO A TRIAL TO TELL YOUR SIDE. HOWEVER, IF YOU, OR YOUR LAWYER, FAIL TO FILL OUT THE ENCLOSED ANSWER FORM AND DELIVER OR MAIL IT TO THE CLERK AT THE ADDRESS SHOWN BELOW, SO THAT IT WILL GET TO THE CLERK’S OFFICE WITHIN FOURTEEN (14) DAYS AFTER YOU RECEIVE THESE PAPERS, A JUDGMENT CAN BE TAKEN AGAINST YOU FOR THE MONEY OR PROPERTY DEMANDED IN THE FOLLOWING COMPLAINT, ONCE A JUDGMENT HAS BEEN ENTERED
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